For all those who have been smoking their post-retirement tensions away, kicking the butt may offer a solution. A rough calculation shows that if money spent on cigarette consumption is routed towards investment, it can take care of one’s post retirement finances.
Considering the fact that most individuals do not keep a tab on how much they spend on cigarettes each month, the statement should not be a surprise.
If you smoke 10 cigarettes a day which cost Rs10 a piece, in a month you would spend Rs3,000 over it. However, if the same money is routed into a mutual fund SIP and it grows at a compounded annual growth rate of 15 per cent every year, your money would accumulate to 2.07 crore over 30 years.
At 10 per cent and 12 per cent the money will grow to Rs67.8 lakh and Rs1.04 crore respectively.
However, if you smoke 5 cigarettes a day and your monthly cigarette spend amounts to Rs1,500, the same amount may grow into a corpus of Rs1.03 crore in 30 years if it grows at 15 per cent. At 10 and 12 per cent, it will grow to Rs33.9 lakh and Rs52.4 lakh respectively.